To understand IMX (Immutable X), here are some important concepts to remember:
- Gas fee: To “add blocks” or approve transactions on the blockchain, a high gas fee or transaction fee could be charged. If a large volume of transactions (traffic) are waiting to be added to the blockchain, the gas fee tends to increase, much like a surge rate.
- Layer-2 blockchain: Layer-1 blockchains are the base layers on which the main functioning of the app is built. A layer-2 blockchain is mostly added onto an existing layer-1 blockchain to enhance its efficiency. It most commonly addresses scalability issues.
- Scalability: In terms of crypto, scalability refers to managing the volume of transactions on a blockchain. The higher the volumes managed, the more scalable the blockchain.
The crypto and blockchain ecosystem is expanding day by day, launching unique products and tools in the form of decentralised applications. One such component of the blockchain network is the NFT (non-fungible token). Trading and minting NFTs usually use the Ethereum blockchain, owing to the security provided by Ethereum standard smart contracts. However, this places an additional load on the blockchain, considerably increasing the gas fee.
Here’s where IMX comes in as a layer 2 scalability solution specifically meant for the NFTs on Ethereum. Here’s everything you need to know about IMX and how it works.
What is IMX?
Immutable X was launched in 2018 by James Ferguson, Robbie Ferguson, and Alex Connolly. It aims to offer instant confirmations for transactions on the blockchain and an almost nil gas fee for minting and trading NFTs.
The native token of Immutable X is termed IMX. A total of 2 billion IMX coins are in supply and are governed by the ERC-20 standard. IMX token can be used to pay transaction fees and to give incentives to users and developers.
Users can also stake IMX coins and earn rewards, and vote for the governance of IMX.
How does IMX work?
Zero-Knowledge Rollup (ZK-Rollup) is the scaling technology used to approve transactions in volumes by creating batches of 100 transactions at a time. The batch is then verified by a smart contract. As a result of less data on every transaction, the verifications and approvals happen fairly quickly.
IMX is carbon-neutral; it can facilitate around 9,000 transactions per second, reducing the gas fee and the energy consumption.
Let’s look at the unique features of IMX.
- The powerful REST APIs simplify complex blockchain transactions. This helps users create and trade NFTs without directly going into the depths of smart contracts. Developers can also integrate crypto wallets and apps to build NFT projects and play-to-earn in a shorter time frame.
- Immutable tokens are global and allow trading NFTs from any blockchain. Therefore, an order on one marketplace can be filled on another through IMX. Users can also seamlessly trade NFTs using NFT-enabled crypto wallets without moving the coins too much across different networks.
- Though there is a maximum supply of 2 billion IMX tokens, the circulating supply is around 240 million tokens.
- IMX supports all desktop wallets for the smooth functioning of transactions from anywhere.
What is the importance of IMX tokens?
IMX has a chain for NFT projects and also has a marketplace to solve user issues related to experience. By reducing the barrier of entry for developers and writers, IMX is focused on skill more than anything else.
The shifting focus towards NFTs, combined with the layer-2 blockchain on Ethereum, makes IMX a significant investment and a boon for entry-level crypto users. IMX creates a platform for NFT businesses to grow with play-to-earn games and marketplaces. Its rapid popularity and dedication are definitely grabbing attention in recent times.
By choosing safe crypto exchanges like ZebPay, your investment in crypto tokens could be done seamlessly. Start trading on ZebPay today!